Validea Martin Zweig Strategy Daily Upgrade Report – 11/11/2022

Here are today’s updates for Validea’s growth investor model based on Martin Zweig’s published strategy. This strategy seeks growth stocks with persistently accelerating earnings and sales growth, reasonable valuations and low leverage.

MGIC INVESTMENT CORP (MTG) is a mid-cap value stock in the insurance sector (Prop. & Casualty). The rating under our Martin Zweig-based strategy rose from 82% to 89% based on underlying company fundamentals and stock valuation. A score of 80% or higher generally indicates that the strategy has some interest in the stock and a score above 90% generally indicates strong interest.

Company Description: MGIC Investment Corporation is a holding company. The Company, through its subsidiaries, provides private mortgage insurance, other mortgage credit risk management solutions and ancillary services. The Company’s mortgage loan insurance product offers primary insurance and swimming pool insurance. Principal insurance provides mortgage default protection on individual loans and covers a percentage of the outstanding loan principal, overdue interest, and certain expenses associated with default and subsequent foreclosure of the mortgage or sale of the underlying property. Pool insurance is typically used as an additional credit enhancement for certain secondary market mortgage transactions. Pool insurance typically covers the amount of loss on a defaulted mortgage that exceeds the claim payment under the primary coverage. Its other products are contract underwriting and others. The Company’s subsidiaries include MGIC Assurance Corporation (MAC) and MGIC Indemnity Corporation (MIC).

The following table summarizes whether the stock meets each of the tests for this strategy. Not all of the criteria in the table below are given the same weight or are independent, but the table provides a brief overview of the stock’s strengths and weaknesses in the context of the strategy’s criteria.

P/E RATIO: PASS
REVENUE GROWTH VS EPS GROWTH: FAIL
SALES GROWTH RATE: PASS
CURRENT QUARTER BENEFITS: PASS
QUARTERLY PROFITS FROM A YEAR AGO: PASS
POSITIVE GROWTH RATE OF RESULTS FOR THE CURRENT QUARTER: PASS
EARNINGS GROWTH RATE OVER THE LAST SEVERAL QUARTER: PASS
EPS GROWTH FOR THE CURRENT QUARTER MUST BE HIGHER THAN THE PREVIOUS 3 QUARTERS: PASS
EPS GROWTH FOR THE CURRENT QUARTER MUST BE ABOVE HISTORICAL GROWTH RATE: PASS
PERSISTENCE OF BENEFITS: FAIL
LONG-TERM EPS GROWTH: PASS
INSIDER TRADING: PASS

Detailed analysis of MGIC INVESTMENT CORP

Complete Guru Analysis for MTG

Full factor report for MTG

NATIONAL FARMERS BENCH CORPORATION (FMNB) is a small cap value stock in the money banking sector. The rating under our Martin Zweig-based strategy rose from 69% to 85% depending on the company’s underlying fundamentals and stock valuation. A score of 80% or higher generally indicates that the strategy has some interest in the stock and a score above 90% generally indicates strong interest.

Company Description: Farmers National Bank Corp. is a financial holding company. The principal activity of the Company consists in owning and supervising its subsidiaries. It provides commercial and retail banking services. The Company’s segment includes Bank segment and Trust segment. The Bank’s commercial and retail banking services include checking accounts, savings accounts and term deposit accounts. It offers commercial, mortgage and installment loans, home equity loans and home equity lines of credit. It offers night deposit, safe deposit boxes, money orders, bank checks, ATMs, internet banking, travel cards and E-Bond transactions. It provides MasterCard and Visa credit cards, brokerage services and other miscellaneous services offered by commercial banks. Its subsidiaries include The Farmers National Bank of Canfield (the Bank or Farmers Bank), Farmers Trust Company (Farmers Trust) and Farmers National Captive, Inc. (Captive).

The following table summarizes whether the stock meets each of the tests for this strategy. Not all of the criteria in the table below are given the same weight or are independent, but the table provides a brief overview of the stock’s strengths and weaknesses in the context of the strategy’s criteria.

P/E RATIO: PASS
REVENUE GROWTH VS EPS GROWTH: FAIL
SALES GROWTH RATE: PASS
CURRENT QUARTER BENEFITS: PASS
QUARTERLY PROFITS FROM A YEAR AGO: PASS
POSITIVE GROWTH RATE OF RESULTS FOR THE CURRENT QUARTER: PASS
EARNINGS GROWTH RATE OVER THE LAST SEVERAL QUARTER: FAIL
EPS GROWTH FOR THE CURRENT QUARTER MUST BE HIGHER THAN THE PREVIOUS 3 QUARTERS: PASS
EPS GROWTH FOR THE CURRENT QUARTER MUST BE ABOVE HISTORICAL GROWTH RATE: PASS
PERSISTENCE OF BENEFITS: PASS
LONG-TERM EPS GROWTH: PASS
INSIDER TRADING: PASS

Detailed analysis of FARMERS NATIONAL BANC CORP

Complete Guru Analysis for FMNB

Full factor report for FMNB

More details on Validea’s Martin Zweig strategy

About Martin Zweig: Over the 15 years of tracking, Zweig’s stock recommendation newsletter has returned an average of 15.9% per year, during which time it was ranked number one based on risk-adjusted returns by Hulbert Financial Digest . Zweig has managed both mutual funds and hedge funds during his career, and he’s put the fortune he amassed to good use. He’s owned what Forbes has reported to be New York’s most expensive apartment, a $70 million penthouse that sits atop Manhattan’s Pierre Hotel, and he’s a collector of all manner of pop culture. and historical memorabilia – among his purchases are the gun used by Clint Eastwood in ‘Dirty Harry’, a stock certificate signed by Commodore Vanderbilt, and even two old-fashioned gas pumps similar to the ones he had seen at a nearby gas station while growing up in Cleveland, according to published reports.

About Validea: Validea is an investment research service that tracks the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information on Validea, click here

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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